A performance audit of the Department of Home Affairs’ procurement and performance management processes for its overseas detention centres has found it to have improved since earlier audits.
In his report Procurement of Garrison Support and Welfare Services, Auditor-General Grant Hehir says the Department’s management of the procurement of garrison support and welfare services for offshore processing centres in Nauru and Papua New Guinea (PNG) was “largely appropriate”.
“Procurement activities for the provision of garrison support and welfare services on Manus Island and Nauru were largely undertaken in accordance with the Commonwealth Procurement Rules (CPRs),” Mr Hehir said.
“The Department utilised provisions of the CPRs to allow for an exemption from requirements for the use of open tender procurements on Manus Island and Nauru,” he said.
“The Department did not document its reasons for requesting quotations from Paladin, JDA and NKW as required by the CPRs.”
Mr Hehir said the Department had demonstrated the achievement of value for money for the Nauru procurement, but for Manus Island it had not appropriately benchmark costs for similar services.
He said a probity management framework was established but it was not effectively applied in all instances.
“A conflict of interest existed that was not acknowledged or managed,” he said.
Mr Hehir said the Department had substantially implemented the recommendations of its previous audit in 2016–17, by developing training programs to address skill and capability gaps and by implementing a wide range of procurement and contract management guidance and instructional material.
“The Department has significantly improved its record keeping practices and has reported to the Joint Committee of Public Accounts and Audit on its implementation of the ANAO’s recommendations,” he said.
The Auditor-General’s report can be accessed online at this PS News link and his 87-page print report at this link.
The audit team was Julian Mallett, Amanda Ronald, Robyn Clark, Renee Hall, Shane Armstrong, Mary Huang and Paul Bryant.
